Limited Liability

Posted in Finance, Accounting and Economics Terms, Total Reads: 535

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Definition: Limited Liability

While making investments, investors often fear about the amount of liability that they would have to incur, in case of a company goes bankrupt. Limited liability is a kind of liability under which the person liability is only limited to the amount invested by him in the partnership or limited liability company irrespective to the amount of losses a company could incur in case of bankruptcy.